As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of Soria Company for the month of October SORIA COMPANY Clothing Department Budget Report For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Sales in units 7,500 11,000 3,500 Favorable Variable expenses Sales commissions Advertising expense Travel expense Free samples given out $1,950 $3,080 $1,130 Unfavorable 825 990 165 Unfavorable 3,300 3,850 550 Unfavorable 1, 650 1,210 440 Favorable Total variable 7,725 9,130 1,405 Unfavorable Fixed expenses Rent Sales salaries Office salaries -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 600 600 0- Neither Favorable nor Unfavorable 4,200 4,200 -0 Neither Favorable nor Unfavorable 1,700 1,100 1,700 1,100 800 800 Total fixed Total expenses $11,925 $13,330 $1,405 Unfavorable As a result of this budget report, Joe was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of contrel. Joe knew something was wrong with the performance repert that he had been given. However, he was not sure what to do, and comes to you for advice. Prepare a budget report based on flexible budget data to help Joe. (List variable costs before fixed costs.) SORTA COMPANY Selling Expense Flexible Budget Report Clothing Department For the Month Ended October 31, 2020 Difference Favorable Unfavorable Neither Favorable Budgct Actual